Over the last week, the spot price of 256M-bit 400MHz DDR chips rose one percent to US$2.01, while the price of 512M-bit 400MHz DDR chips increased by 3.8 percent to US$4.10, DRAMeXchange said. Continued strong demand for DDR meant that DDR2 prices remained weak, with prices for faster 512M-bit 533MHz DDR2 chips falling 2.1 percent to US$4.72, it said.

Demand for DDR chips was strong because Intel is aggressively selling off stocks of its 865G chipset, which is designed for desktop computers that run the Pentium 4 processor, DRAMeXchange said. Intel has reduced the 865G's price in a bid to clear out its inventory, and the chipsets are now "flooding" motherboard makers, it said.

As more 865G chipsets are sold, DRAMeXchange expects to see demand for DDR "pick up further."

However, users shouldn't expect to see a sharp drop in DDR2 prices. An ongoing shortfall in DDR2 chips means the 512M-bit part's price will remain flat or drop by up to three percent, DRAMeXchange said.

This supply shortage should keep prices stable through April, it said.

Slideshows

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